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Something was driving me crazy when I installed the latest version of photoshop, when I would double click on a text layer no highlight would show up. The text cursor wouldn't blink. It just downright didn't look selected, but if you scaled or changed colors it would respond.
I did some online research and found out that it's a graphics processing error. The initial advice I found was to go to Edit>Preferences>Performance... and to uncheck "Use graphics processor".
Now... this DID work. It fixed the problem, but now photoshop isn't using my graphics card, and it's running all laggy. When I zoom in or pan around it's not very responsive.
TURNS OUT, the solution to my problem was actually in the OPPOSITE direction! After about 20 minutes of re-installing older Nvidia graphics drivers (thinking Nvidias update might be to blame) Then giving up and updating back to the most current driver. I DID THIS:
I went back into Edit>Preferences>Performance... I turned back on "Use graphics processor", but then I clicked on "Advanced Settings..." and noticed that my Drawing Mode was set to Basic, which apparently makes your graphics card perform, but not very strong (Not strong enought to live highlight text??) I switched drawing mode to "Advanced" and BOOM, everything's working. Better than ever!!!
I hope this helps and works for anyone who stumbles upon my entry. I have not experimented with just setting drawing mode to "Normal". I have an Nvidia RTX 2080 graphics card and run Windows 10, and well... results may very, but that's what worked for me. I'm VERY glad I stumbled onto that, because honestly, I'm getting much better overall performance than I was in the first place.
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Thanks @Tony Zed
This problem appeared in version 21 and resolved on october 2019 as I remember! I didn't notice it is back again!
Mine just works when I disable "Use Graphics Processor", and by enable it and play with "Advanced Settings" it didn't work!
I think the bug is back in version 2021!